Teracent has developed a technology that can pick and choose from literally thousands of creative elements of a display ad in real-time ? tweaking images, products, messages or colors. These elements can be optimized depending on factors like geographic location, language, the content of the website, the time of day or the past performance of different ads.

"This technology can help advertisers get better results from their display ad campaigns. In turn, this enables publishers to make more money from their ad space and delivers web users better ads and more ad-funded web content," Neal Mohan, Vice President, Product Management at Google wrote in a blog.

"The infrastructure, opportunities and technical depth that Google will provide for Teracent customers means a future of product innovation for Teracent's dynamic ad optimization platform. The transaction is subject to various closing conditions and is expected to close this quarter," Teracent said in a statement.

The Teracent technology will be available to Google's display advertising clients ? including those who run display ad campaigns on the Google Content Network and DoubleClick clients, Google said.

The financial terms of Google's purchase Teracent were not disclosed. Google said the transaction is expected to close this quarter.